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Updated almost 8 years ago on . Most recent reply

I have a Partner with Capital, how can I bring Value to the Table
Good Evening from Denver,
Today I was talking with one of my old bosses , shooting the bull about nothing. But then I asked him what he wanted to do after he was done welding, and if he had given it any thought. So I brought up Real Estate, and the BP website and tried to describe to him what I've learned so far. I did my best to explain the House Hacking Concept, BRRRR, etc.
Apparently, I must have done a pretty good job, because he said, "Sold! I like it"
I told him, "I'm not selling anything, I'm just telling you what I've learned so far"
Well he didn't seem to care, and told me he wants to get involved and we should become 50/50 partners in this. "But I don't have much capital to put down Boss, and if you put down most of the capital, you would get the lion's share," I said. He agreed, but still seemed unchanged, he wants me to look for deals for us to do them together.
I should shed light to our personal relationship between him and I. We worked together in the past, and he was my main mentor in the field of welding. The guy has done so much for me, and I consider him a fatherly figure away from home. For my current job, and title; I owe him my success.
How can I bring value to the table?
Better yet, how can I not let the guy down?
It would encourage me to hear positive responses from the community on the best course of action in this situation.
Regards,
Jacob Resendez
Most Popular Reply

Hey @Jacob Resendez!
Welcome to the community and RE investing! It can be a very rewarding experience and you'll get out of it what you put into it.
To start out with I'd recommend talking about your shared goals and what you are both looking to achieve. Are you looking for passive cash flow and appreciation potential available in buy and hold rentals? Do you want a quick return on your cash and more management responsibilities that can be found through more active investments like flipping or wholesaling? Are you just looking for a place to park cash and achieve a decent return like via a REIT or RE investment fund?
Once you determine what your goals are and what path you want to go down the best way to get started is just to constantly evaluate deals. Make or find spreadsheets to model what you think potential investments would look like and use & update them constantly. Get familiar with the numbers and your strategy so that when you see deals you know right away if it has potential for you or not. Really get to know your chosen niche and market area. For me this was a 6 month process of plugging numbers into a buy and hold spreadsheet I made. Once you know deals and what you can expect you'll know when a good one comes along. Along the way you'll also have seen a few other deals happen and you've read a bunch more on BP and other resources about best practices for your investment method.
Take that good deal down and constantly be evaluating what you could have done and what you can do better. Eventually after you do a few you won't have to rely on your spreadsheets as much because you'll know the numbers off the top of your head. At this point you'll have massive value to people like your boss. All the knowledge and research you put in finding & evaluating deals initially is the value that you can provide right now. As you and your knowledge become more value you can change the splits and returns because your experience and track record is more valuable so your expertise is worth more.
Keep going and keep us updated! Share your wins and losses so others can learn from your experience just like you have done.